Renting vs Buying in London, Ontario
Renting versus buying isn't a one-size-fits-all answer — it depends on how long you'll stay, your finances, and the current market. London, Ontario's relative affordability shifts the math in favour of buying sooner than in pricier cities, but it's still worth running your own numbers.
This guide lays out the trade-offs honestly. It's general information, not financial advice.
The case for buying
Buying builds equity instead of paying a landlord, gives you stability and control over your space, and — in London's more accessible market — is often achievable with a smaller down payment than in the GTA. Over a long enough horizon, ownership has historically outpaced renting in total cost.
The case for renting
Renting offers flexibility and no exposure to maintenance, property tax, or market swings. If you might move within a couple of years, or you're still building a down payment and stable income, renting can be the smarter short-term choice — the transaction costs of buying and selling reward staying put.
How to decide
The biggest single factor is your time horizon: the longer you'll stay, the more buying makes sense, because you spread the one-time costs (land transfer tax, legal fees, moving) over more years. Beyond that, look at your down payment, job stability, and whether a monthly mortgage payment on a home you'd want is close to comparable rent.
Run your budget with the affordability calculator, then compare it to what you'd pay to rent a similar place.
Frequently asked questions
Is it better to rent or buy in London, Ontario?
It depends on how long you plan to stay and your finances. London's relatively affordable housing means buying often makes sense sooner than in bigger cities, especially if you'll stay several years and can cover the down payment and closing costs. Renting suits shorter horizons and those still building savings.
How long should you plan to stay to make buying worth it?
As a rule of thumb, the longer the better — buying and selling carry one-time costs (land transfer tax, legal fees, moving) that take time to offset. Many buyers use a horizon of several years as the point where owning tends to beat renting.
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